We must adjust to new global order November 11, 2010 IT takes time for new realities to sink in, especially in economics and geopolitics. One reason why the G20 meeting in Seoul won’t achieve anything of any real substance is that the old order still believes that it can play by the old rules – and by that I mean primarily the Americans. The Fed’s [...]
Fed reveals more QE details November 10, 2010 The Federal Reserve will buy about $105bn (£65bn) of Treasuries and Treasury inflation-protected securities in 18 operations from 12 November to 9 December as part of its next batch of quantitative easing, the New York Fed said last night. Around $75bn of this sum is part of the new $600bn easing programme announced last week, [...]
Wall Street rises as dollar hits new high November 10, 2010 THE dollar hit a one-month high yesterday after data pointed to an improving US labour market while Wall Street rose as investors set aside recent worries whether a rally would continue. But global stocks fell as Ireland’s borrowing costs hit another euro lifetime high and investors worried that a Federal Reserve move announced last week [...]
AUSSIE NOW VULNERABLE TO A SELL-OFF November 9, 2010 DIRECTOR OF CURRENCY RESEARCH, GFT IN CONTRAST to last week’s wild gyrations in the currency market, this week promises to be considerably more sedate. After the Fed announced $600bn in additional QE and the better than expected US jobs report, the FX market turned very bullish with traders ploughing into high-yield currencies like the Australian [...]
FOREX ANALYST PICKS November 9, 2010 FOREX STRATEGIST ILYA SPIVAK My pick: Short euro-US dollar near $1.41 Expertise: Global macro Average time frame of trades: 1 week-6 months Euro-US dollar has fallen sharply to start the week and a deeper downward correction looks likely given that the rally can be retraced back to August when the Fed first introduced the idea [...]
DON’T BET ON THE FED’S QE2 SHELL GAME November 8, 2010 CFD MARKET STRATEGIST, GFT We’ve just seen an incredibly significant week for the financial markets. Following the US mid-terms, the Republicans have control of the House of Representatives and have cut the Democrats’ Senate majority. While the new Congress won’t be in place until January, the Republican gains will influence the debate over the Bush [...]
THE TIPSTER November 8, 2010 The Bank of England’s quarterly Inflation Report should provide some excitement for the currency markets this week. All market participants will be eagerly awaiting what the report has to say about growth prospects in the UK and whether further quantitative easing remains a real possibility. Capital CFDs quotes a price of €1.1590-€1.1594 for sterling-euro. Walt [...]
Quantitative easing risks stoking a bubble in emerging market equities November 8, 2010 EXPECTATIONS of another round of quantitative easing in the US had been riding high for several months and last week Helicopter Ben gave the markets exactly what they had been clamouring for. Investors across the world wildly applauded the Federal Reserve’s decision last week to pump $600bn into the US economy and needed little excuse [...]
Wall Street falls as banks and strong dollar weigh November 8, 2010 WALL Street retreated from a two-year high yesterday, weighed down by financial stocks and a stronger dollar. The broad S&P 500 has risen five straight weeks, supported by the Federal Reserve’s plan to buy $600bn of treasuries to lower interest rates and reinvigorate a sluggish economy. With those gains, traders said most S&P sectors were [...]
WALL STREET TO KEEP ON CLIMBING POST-FED’S QE November 7, 2010 With the Fed confirming the latest round of quantitative easing and the Dow breaking above the April high of 11,258, this now becomes the first level of support for the index. WorldSpreads offer a two-point spread on the Dow Jones index. US crude oil was given a boost by the Fed decision and positive US [...]